As part of this agreement, IBM BladeCenter will be the only blade server
platform available for custom ICE Cube implementations globally. IBM
BladeCenter integrates servers, networks, storage, and business
applications in a single, highly efficient system and is thus ideal for
packing large amounts of computing power into portable data center
environments.

The ICE Cube modular data center solution will be outfitted with IBM
BladeCenter T or HT systems, which meet Network Equipment-Building System
(NEBS) Level 3/ European Telecommunications Standards Institute (ETSI)
requirements, so are ideal for use in telecommunications environments and
carrier facilities (1). The blades are designed to withstand extreme
environments where modular data centers are often deployed, such as remote
construction sites or oil fields.

"Rackable Systems sees this strategic relationship as a further opportunity
to provide our customers with unique, built-to-order solutions," said Mark
J. Barrenechea, president and CEO of Rackable Systems. "Including IBM
BladeCenter in ICE Cube enables Rackable to expand its market reach to new
customers, new fault tolerant workloads and new markets seeking products
that meet NEBS requirements."

Rackable is also joining Blade.org, the industry consortium driving open
innovation in blade-based solutions, and plans to contribute to development
and innovation around IBM's BladeCenter platform. IBM and Intel took a
unique approach in the blade server industry in 2004 by opening the
architecture and specifications of the IBM BladeCenter system. This move
enabled a growing community of over 500 technology companies like Rackable
to download the specifications for free, develop products for the
BladeCenter ecosystem and shape the direction of the blade server platform.

"IBM continues to forge agreements to expand the marketplace for IBM
BladeCenter. Today's announcement with Rackable Systems creates yet another
opportunity for customers to select BladeCenter and highlights the industry
leading density and energy efficiency BladeCenter provides," said Alex
Yost, vice president of IBM BladeCenter. "Rackable Systems' selection of
IBM BladeCenter is further evidence of the primacy of BladeCenter's design,
strong customer demand for the product and IBM's commitment to foster an
open ecosystem around it."

ICE Cube with IBM BladeCenter T and HT is available immediately and offered
worldwide by Rackable Systems and its channel partners. For more
information on Rackable Systems' ICE Cube with IBM BladeCenter, please
visit:
www.rackable.com/icecube.

About Rackable Systems, Inc.

Rackable Systems, Inc. (NASDAQ:
RACK) is a leading provider of
Eco-Logical servers and storage for large-scale data center
deployments. The company's products are designed to provide benefits in the
areas of density, thermal efficiency, serviceability, power distribution,
data center mobility and remote management. Founded in 1999 and based in
Fremont, California, Rackable Systems is a founding member of The Green
Grid and serves Internet, enterprise software, federal government,
entertainment, financial services, oil and gas exploration and HPC
customers worldwide.

IBM has the broadest portfolio of blade offerings in the industry,
including five blade enclosures, five compatible server blades and five I/O
fabrics with a common architecture that allows clients to mix and match
offerings. IBM has also taken a unique approach in the industry by opening
up the IBM BladeCenter hardware architecture, which has created market and
revenue opportunities for hundreds of companies selling peripherals like
network and storage cards, switches and software. Since opening the
BladeCenter specifications in 2004, 500 companies have downloaded the
specifications for free. For more information about IBM BladeCenter, please
visit:
www.ibm.com/bladecenter.

All statements regarding IBM's future direction and intent are subject to
change or withdrawal without notice, and represent goals and objectives
only.

IBM and IBM BladeCenter are trademarks of IBM Corporation in the United
States and/or other countries. Rackable Systems and other marks used herein
are registered trademarks of Rackable Systems®, Inc. All other trademarks
are property of their respective holders.